E.R.

for the second tranche scheme.

deliberately been drafted SO that it could be used without

modifications for the second tranche. Mrs Wei would appreciate that UK Ministers might not wish to re-open debate on the 1990

Act by putting forward a modified scheme. UK Ministers would

therefore need persuasive arguments if they were to agree to

modify the scheme for the second tranche. To this end it would

be helpful if the Home Office was brought in at an early stage

on any review of the scheme.

I pointed out that the scheme had

4. On the Governor's Annual Report Mrs Wei confirmed that a

draft would shortly be passed to the Home Office for any comment.

5. Mr Alistair Asprey, Secretary for Security I put to Mr

Asprey the same point about including in the Governor's Report

an assurance that the number of recommendations would increase

in 1992. He too mentioned the possibility of reviewing the

scheme; I made the same points as I had put to Mrs Wei.

6. Mr Isaac Chow, Principal Assistance Secretary (Security)

Mr Chow raised with me Home Office policy on returning residents.

I pointed out that there had been no change of policy or practice

but simply a clarification of the Immigration Rules. Mr Chow mentioned that the Hong Kong concern arose over one person who had been in the habit of returning to the UK once every two years to retain residence status. Eventually the IO had refused to

give indefinite leave to enter and the Hong Kong resident had

raised this through contacts within OMELCO. I refrained from

pointing out that the IO had undoubtedly been right to refuse to

grant indefinite leave.

7. Mr Chow raised the children of British citizens born after

1 January 1983 raised with Lord Caithness and by OMELCO. I

outlined Home Office Ministers' thinking on this subject. Mr Chow felt that there were no other groups likely to press for

immigration or nationality concessions. The only outstanding

group of which he was aware were Asian ethnics at present resident in Hong Kong. However, this group had no sympathisers

on OMELCO and Mr Chow believed their case would not be pushed by

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